Unfair Business Practice<< Return
Insurance companies must follow strict guidelines in order to fulfill their duties to policyholders and prospective policyholders. If they violate these guidelines they are engaging in unfair business practices, a form of insurance bad faith.
For example, some insurance policies include an arbitration clause. By signing the application, you give up the right to sue your insurance company should a coverage dispute or other dispute arise. Failing to provide proper notice of the relinquishing of this right can be an unfair business practice.
An insurance company is in violation of section 17200 of the California Business and Professions Code if it engages in unfair business practices that negatively affect everyone, not just an individual.
Other examples of unfair business practices include:
- Changing the policy terms without notifying the policyholder
- Increasing premiums without proper notification
- Retroactively reducing or eliminating coverage
- Using computer software that systematically undervalues property damage assessments
People who purchase an insurance policy have a legal right to expect the insurance company to make good on their contractual agreement. When insurance companies shirk their responsibilities to policyholders, they are liable for insurance bad faith lawsuits.
For more than 40 years, the insurance bad faith attorneys of Shernoff Bidart Echeverria LLP have defended the rights of policyholders. If you believe your insurance company is engaging in unfair business practices, whether they involve increased premiums or benefits changes, please contact our unfair insurance practices lawyers today for a free initial consultation and case evaluation.